- 80,658 tonnes processed in Q4 2017 with 29,983 carats recovered at an average grade of 0.37ct / tonne

- 17,025 tonnes processed in Q1 to date with 7,495 carats recovered at an average grade of 0.44ct / tonne

The results demonstrate that Mustang's strategy to establish Montepuez as a world-class ruby project with consistent production and exploration upside is on track.

Mustang Managing Director Dr. Bernard Olivier said: "Having spent time on site in recent weeks, I am very pleased to report that exploration, bulk sampling and processing activities on the Montepuez Ruby Project are meeting our targets. These results reflect the skills and commitment of Mustang's motivated and experienced operational team.

"The Q4 2017 plant optimisation program is generating the intended results with further improvements and upgrades now being implemented. The overall results demonstrate that Montepuez is highly prospective and technically sound.

"We will provide an update shortly on the marketing and sales progress we are making."

Exploration

The ongoing exploration activities conducted during Q4 2017 and Q1 2018 have already delivered positive results. The exploration, pitting, trenching and bulk sampling program has now extended the gravel bed extension from 3.3km to 4.2km. At total of 69 sampling pits were developed and processed during the period while a total of 14,502 tonnes of material were excavated and extracted as part of the bulk sampling process. The geology team has also analysed the exploration dataset and selected further targets for additional pitting. During the remainder of Q1 2018, the exploration program will focus on identifying further high-grade targets for large-scale bulk sampling excavation and processing, as well as further delineating the dimensions and ruby distribution of the deposit, which remains open in all directions.

Bulk Sampling and Processing

During Q4 2017, significant improvements were made to the processing plant to optimise its efficiencies and reduce processing costs. Average grades increased by more than 10% from October 2017 onwards compared with the total average grade achieved from previous bulk sampling.

Mustang is also implementing further processing, sorting and grading improvements to increase overall efficiencies.

Ongoing processing of bulk sample material since October 2017 has returned the following results:

- 80,658 tonnes processed in Q4 2017 with 29,983 carats recovered at an average grade of 0.37ct / tonne

- 17,025 tonnes processed in Q1 to date with 7,495 carats recovered at an average grade of 0.44ct / tonne

As at 31 January 2018, the Company had inventory available for sale of 302,028 carats.

Listed on the Australian Securities Exchange, Mustang Resources Limited (ASX:MUS) (FRA:GGY) is an emerging gemstone developer and producer focused on the near-term development of the highly prospective Montepuez Ruby Project in northern Mozambique.

The Montepuez Ruby Project consists of three licences and now one mining concession covering 19,300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields PLC in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current high demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.

The Company is currently fast-tracking its work program on the Montepuez Ruby Project with extensive secondary deposits discovered and low-cost bulk sampling well underway. First rough ruby sales are scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius under a closed bid tender of more than 350,000 cts gem quality rubies.